Cycurion, Inc. Form 8-K Summary
Business Context and Reporting Period
This Form 8-K was filed by Cycurion, Inc. (CYCU) on September 25, 2025. The report details a corporate governance action taken by the Board of Directors regarding the waiver of lock-up restrictions on Series A Convertible Preferred Stock. The Company is an emerging growth company incorporated in Delaware.
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or debt metrics. The only specific financial figure disclosed relates to the cost of the Series A Convertible Preferred Stock:
- Annual Preferred Stock Cost: Approximately $120,000 per year in stock or cash payments.
- Warrant Exercise Price: $11.50 per share for redeemable warrants (CYCUW).
Material Changes
On September 25, 2025, the Board of Directors waived the one-year lock-up restrictions previously imposed on holders of Series A Convertible Preferred Stock following the business combination with Western Acquisition Ventures Corp. on February 14, 2025.
- Original Conditions: The lock-up was set to release after six months if the daily trading value exceeded $150,000 for 30 consecutive days and the 30-day VWAP exceeded $5.00.
- Reason for Waiver: The Company's common stock did not meet the specified trading conditions. The Board deemed the waiver in the best interest of the Company to facilitate a strategic recapitalization.
Outlook, Management Commentary, and Risks
Management views the waiver as a strategic move to strengthen the balance sheet and support growth initiatives. The primary objective is to encourage holders to convert their preferred stock into common stock.
- Financial Impact: Conversion of the preferred stock could save the Company approximately $120,000 in annual costs on its income statement.
- Strategic Goal: The action is part of a broader recapitalization strategy.
Key Facts for Investor Verification
- Verify the current trading volume and VWAP of CYCU common stock to understand the market conditions leading to the waiver.
- Monitor whether Series A Convertible Preferred Stock holders exercise their conversion rights following the waiver.
- Confirm the impact of the potential $120,000 annual cost savings on future income statements.
- Review the Company's broader recapitalization plan for additional details on balance sheet strengthening.